Entrepreneurial ecosystems have emerged as a popular concept to explain the persistence of high–growth entrepreneurship within regions. However, as a theoretical concept ecosystems remain underdeveloped, making it difficult to understand their structure and influence on the entrepreneurship process. The article argues that ecosystems are composed of 10 cultural, social, and material attributes that provide benefits and resources to entrepreneurs and that the relationships between these attributes reproduce the ecosystem. This model is illustrated with case studies of Waterloo, Ontario, and Calgary, Alberta, Canada. The cases demonstrate the variety of different configurations that ecosystems can take.

Research Summary: Entrepreneurial ecosystems have recently emerged as a popular concept within entrepreneurship policy and practitioner communities. Specifically, they are seen as a regional economic development strategy that is based around creating supportive environments that foster innovative start‐ups. However, existing research on entrepreneurial ecosystems has been largely typological and atheoretical and has not yet explored how they influence the entrepreneurship process. This article critically examines the relationships between ecosystems and other existing literatures such as clusters and regional innovation systems. Drawing on this background, the article suggests that a process‐based view of ecosystems provides a better framework to understand their role in supporting new venture creation. This framework is used to explain the evolution and transformation of entrepreneurial ecosystems and to create a typology of different ecosystem structures. Managerial Summary: Entrepreneurial ecosystems are a new buzzword within research and managerial circles. They represent the types of cultural, social, economic, and political environments within a region that support high‐growth entrepreneurship. But current research does little more than look at successful ecosystems to identify best practices. This article examines what we know about entrepreneurial ecosystems and links them with existing theories like clusters and regional innovation systems. We argue that successful and unsuccessful entrepreneurship within an ecosystem generates critical entrepreneurial resources like investment capital, skilled workers, and entrepreneurial knowledge. This, in turn, supports future high‐growth venture creation. The types of resources available in an ecosystem and the ability of these resources to flow through social networks helps separate strong, well‐functioning ecosystems from weak, poorly functioning ones.

Entrepreneurial ecosystems have become a prominent concept, yet in its current state, the concept itself represents a paradox. While it draws on a rich intellectual history and provides an opportunity to synthesize different strands of research, it is also under-theorized and the mechanisms that govern ecosystem evolution are not well understood. This paper takes stock of recent advancements in ecosystem scholarship and synthesizes the empirical reality of the causal mechanisms. We use these dynamics to position ecosystems in a broader context, within and beyond the domain of entrepreneurship research, and propose a transdisciplinary research program for ecosystem research and practice.

This paper reviews and discusses the emergent entrepreneurial ecosystem approach. Entrepreneurial ecosystems are defined as a set of interdependent actors and factors coordinated in such a way that they enable productive entrepreneurship within a particular territory. The purpose of this paper is to critically investigate the emerging literature on entrepreneurial ecosystems. Current work on ecosystems is underdeveloped, focusing more on superficial generalizations based on successful case studies such as Silicon Valley or Boulder, Colorado rather than on rigorous social science research. The paper provides a review of the multiple definitions of ecosystems found within the literature, and discusses the relationships between ecosystems and allied concepts such as industrial districts, clusters, and innovation systems. The paper concludes by discussing an integrative model that connects the functional attributes of entrepreneurial ecosystems (including framework conditions and systemic conditions) with entrepreneurial outputs and welfare outcomes. The framework conditions consist of the social (informal and formal institutions) and physical conditions enabling or constraining human interaction. Systemic conditions are the heart of the ecosystem and include networks of entrepreneurs, leadership, finance, talent, knowledge, and support services.

Researchers and policymakers are increasingly employing the concept of entrepreneurial ecosystems to understand the concentration of high growth ventures in certain regions. Ecosystems represent the economic, social, and policy environment surrounding the entrepreneurship process. Public and privately run entrepreneurship support organisations (ESOs) form a critical part of entrepreneurial ecosystems by providing training and resources to entrepreneurs and new ventures. However, the role of ESOs within ecosystems is poorly understood with little conceptual or empirical discussions about how they contribute to the development of successful entrepreneurial ecosystems. To address this gap this paper employs the concept of institutional thickness to identify the optimum structure of support programs within a region. The role of institutional thickness is explored through an investigation of entrepreneurship support programs aimed at technology entrepreneurs in Edinburgh, UK. 43 ESOs are identified and their actives and types of support they provide analysed. The paper argues that there is the need for a new approach to the role of ESOs within ecosystems that looks beyond a single program but instead embraces a more holistic perspective that sees how they work in conjunction to provide support for firms throughout the venture creation and growth process.